When must insurance companies send policyholders their annual privacy notice?

Insurance companies are required to send their policyholders an annual privacy notice to comply with the Gramm-Leach-Bliley Act, which mandates that financial institutions, including insurers, inform their customers about their privacy policies and practices. This annual notice is intended to ensure that consumers are continuously aware of how their personal information is being collected, used, and shared.

Providing this notice on an annual basis reflects the necessity for transparency in the handling of sensitive personal data, thus reinforcing consumer trust and compliance with federal regulations. Sending the notice only under specific circumstances, such as when there is a change in policy or upon request, would not fulfill the requirement to inform policyholders regularly about their privacy practices. By being vigilant about annual notifications, companies ensure that policyholders remain informed, reinforcing their commitment to protecting customer privacy year after year.